These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
As suggested yesterday, we could see some blood letting on the bourses. And it seems to have happened. The fundamental reason could be the news that Iran wants to shift its trading and reserves to the Euro, instead of the Dollar.
In such a scenario, hedge funds would want to withdraw from uncertainties and speculate on the currencies. This could be a reason why such a sudden fall has happened.
As suggested yesterday, we could see some blood letting on the bourses. And it seems to have happened. The fundamental reason could be the news that Iran wants to shift its trading and reserves to the Euro, instead of the Dollar.
In such a scenario, hedge funds would want to withdraw from uncertainties and speculate on the currencies. This could be a reason why such a sudden fall has happened.
Normally, when such an event happens, the market usually recovers after a gap of a week to a fortnight.
However, we are concerned only about the technicals. And the technicals suggest that the short term trend is down in the longer term uptrend. The lower tops and bottoms do suggest that.
The 3970 zone was not tested at all, as a result of which, we saw a sharp downside. Neither did the 3900 and 3850 levels provide support. So we could assume the trend to be down. In such a scenario, any upsides could be capped by additional selling at higher levels.
A trading plan would be extremely useful at this juncture.
Trade happy.
However, we are concerned only about the technicals. And the technicals suggest that the short term trend is down in the longer term uptrend. The lower tops and bottoms do suggest that.
The 3970 zone was not tested at all, as a result of which, we saw a sharp downside. Neither did the 3900 and 3850 levels provide support. So we could assume the trend to be down. In such a scenario, any upsides could be capped by additional selling at higher levels.
A trading plan would be extremely useful at this juncture.
Trade happy.
5 comments:
Sir
I Sudesh from Delhi really apprct your works. Sir which charting software u use most. As I'm looking for some good charting software, using metastock 9 at the momnt
Hello Sudesh,
Thank you for your kind words.
I use Metastock 8.
Any software is just a tool. It does not make an analyst.
Dusant
Wah sirji wah, tusi gr8 ho !!
reg
ketan
Pandyaketan,
I must differ with you here, I am not great.
Only the market is great, and I am only a humble follower of the market.
You ARE the market !!
Haha ! And therefore great !
reg
ketan
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